India is establishing itself as a significant player in the global lithium-ion battery ecosystem, though its capabilities across the supply chain remain varied. A recent 2025 ranking by BloombergNEF places India 18th worldwide, highlighting both its progress and areas needing substantial improvement.
India's Position in the Global Battery Market
The BloombergNEF assessment, cited in a September 2026 transcript by DSP, evaluates countries based on their performance across raw materials, battery manufacturing, ESG (Environmental, Social, and Governance), industry, innovation, infrastructure, and downstream demand. India's overall 18th rank signifies a growing battery industry, but also points to critical gaps in its manufacturing infrastructure, innovation landscape, and ESG performance.
Key Segments: Strengths and Challenges
Delving into specific parameters, India demonstrates relative strength in certain areas:
- Raw Materials: Ranked 13th globally, indicating a solid foundation in sourcing and processing essential battery components.
- Battery Manufacturing: Achieved the 10th position, reflecting a notable capacity in producing batteries.
- Downstream Demand: Ranked 13th, showing a healthy internal market for battery applications, primarily electric vehicles and energy storage.
However, significant weaknesses were identified in other crucial segments:
- ESG Performance: A low ranking of 26th suggests considerable room for improvement in environmental, social, and governance practices within the battery industry.
- Industry, Innovation, and Infrastructure: Ranked 21st, highlighting challenges in fostering advanced research, technological development, and robust supporting infrastructure.
Global Dynamics and China's Dominance
Globally, China continues to dominate the lithium-ion battery supply chain, securing the top position. DSP's analysis underscores China's overwhelming control, holding approximately 90% of global anode material capacity and nearly all of the world's graphitisation capacity. This makes graphite a potential bottleneck for the entire industry.
The market is also witnessing a significant shift in battery chemistry. Lithium Iron Phosphate (LFP) batteries accounted for over 55% of global EV batteries in 2025, a sharp increase from 24% in 2021. This shift is primarily driven by cost-effectiveness, with LFP packs being more than 40% cheaper per kWh compared to Nickel Manganese Cobalt (NMC) packs in 2025.
Surging Demand and Future Opportunities
The timing of this ranking coincides with a projected sharp expansion in global battery demand. DSP estimates total battery demand to grow from around 1,591 GWh in 2025 to between 3.5 and 4.4 TWh by FY30, representing an annual growth rate of 17-23%. Electric vehicles remain the largest consumer, but energy storage and AI data centers are emerging as rapidly growing sources of incremental demand.
AI data centers, in particular, are forecast to be the fastest-growing segment, with battery demand expected to soar from about 15 GWh in 2025 to 209-300 GWh by FY30. For India, leveraging its strengths in raw materials and manufacturing while addressing the weaknesses in ESG, innovation, and infrastructure will be crucial to solidify and advance its position in this expanding global market.